Demianchuk M., PhD (Economics), Associate Professor of the Department of Finance, Banking and Insurance, Odessa I. I. Mechnikov National University, Odessa, Ukraine

ORCID ID: 0000-0002-3907-3464
e-mail: ma-demyanchuk@ukr.net

Yedakina M., graduate student, Odessa I. I. Mechnikov National University, Odessa, Ukraine

ORCID ID: 0000-0003-2837-1359
e-mail: missmary26031997@gmail.com

An Econometric Model of the Dependence of Deductions on Social Payments of Enterprises and their Financial Results

Abstract. Introduction. One of the most important socio-economic determinants of enhancing the development of any country, the key factor for its success, is the quality of human resources: education, intelligence, professional experience, social mobility, and the ability to innovate in professional activities and social life. In a modern developed economy, financing the development of human capital, education, and the standard of living of an employee are no longer considered unproductive and costly investments, which are imposed by state policy in order to ensure social growth. More and more companies are interested in providing their employees with the full “social package of services” necessary for a dignified and productive life and to ensure appropriate working conditions. The purpose of such investments in the development of society is to increase the productivity of workers, creating conditions for the generation of new ideas, new projects, and the like. These companies are the ones that demonstrate high rates of efficiency and sustainable development. The current stage of development of society requires increased attention to social investment as a targeted investment of resources in the development of the social sphere in order to obtain a useful social effect in the future. This determines the relevance and practical importance of scientific research on the problems of social investment of enterprises at the present stage of development of Ukraine.

Purpose. The aim of the article is to build econometric models of the dependence of deductions on social payments of enterprises and their financial results.

Results. An analysis of the human development index of some countries and the profile of Ukraine allowed us to establish that in most countries with developed economies, with the growth of the well-being of the population in private investors, the volume of voluntary participation in social investment projects is also growing. In our work, the term “social investments” is understood as money resources invested on a voluntary basis to solve social problems. The concept of “social investment” should be understood as the process of attracting (investing) internal and external resources of funds with the choice of the object of social investment, and the concept of “corporate social responsibility” provides for the responsibility of the enterprise for its impact on society and employees, the highest form of manifestation of which is social investment integration into the business strategy of the enterprise to achieve sustainable development. Empirical studies have shown that the relationship between the amount of contributions to social events and the net income of enterprises, in general, show a positive, but varying degree, correlation. Using economic and mathematical analysis and using the statistical method of multiple regression, the authors constructed econometric models of the dependence of the amount of contributions to social events and the net income of the studied enterprises, which revealed a high degree of correlation. Since social responsibility creates new opportunities in increasing the competitiveness of companies and their value, this allowed us to identify motives, incentives and obstacles to the development of social responsibility of businesses, as well as the manifestation of socially responsible businesses.

Conclusions. Based on the studies on the construction of econometric models of the dependence of deductions on social payments of enterprises and their financial results, it was possible to form their own view on the essential meaning of the categories «social investments», «social investment» and «corporate social responsibility». The analysis of deductions for social events and the net income of enterprises providing services in various fields of economic activity made it possible to establish a high correlation dependence between these indicators only at some enterprises. Based on this and using the multiple regression method, econometric models of the dependence of these indicators with a sufficient degree of confidence are constructed. The motives, incentives and obstacles to the development of social responsibility of business in modern conditions are identified and their manifestation by the state and by enterprises are presented, which will contribute to the wider dissemination of the studied problems at enterprises of various levels and forms of ownership.

Keywords: human development index; social investments; corporate social responsibility; econometric models; socially responsible business.

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